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2 The objective of this module is to... Introduce concepts and tools that can assist with designing an effective structure for administrative services regardless of the size of your agency Provide agencies with information to understand strengths and weaknesses of different structures for Simplified Administrative Services Discuss the timeline and transition issues related with changing the structure

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7 As part of our preparation for today, we met with many of you regarding your current structures We asked specific questions related to your structure, approval path, and processes for doing material and financial management activities We developed model as-is structures to identify common strengths and weaknesses of the structures across the Commonwealth

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8 However, organizational infrastructure is comprised of a number of building blocks Staff Development Recruitment/ Deployment Rewards/ Incentives Organization Structure Leadership Structure alone will not support the success you need...

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9 Today, we will discuss the important factors related to these characteristics of organizational design How involved does leadership need to be? What are potential hazards of changing the structure? Where are the critical points for decision making?

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10 Todays session will be supported by a number of tools, templates, and examples Hard copies of tools and templates are located in your handouts Each participant will receive an electronic folder with the tools and templates They will be sent to your address on Monday and Tuesday of next week Examples are imbedded within todays module. Primary example will be the Finance and Administration Cabinet and organizations within

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11 Tools that you will receive: asis_assess.doc handouts.doc orgdoc_out.doc File Name Description How to assess your organizational infrastructure A case example of the Finance and Administration Cabinet that includes a number of templates and documents that you can modify to meet your agencys needs Outline for creating an integrated organizational briefing document to support desired organizational changes

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12 To improve your agencys Administrative Services approach, ask the following questions: Does your agency lack a clearly defined set of vision and design criteria for your administrative services organization? Does your agency currently have a Central data entry organization that enters data from field or program areas? Does your agency have more than three approval paths? Does your agency currently store copies of forms, invoices and bills in more than one location for your agencys transactions? Does your agency have redundant activities occurring in your administrative services area (e.g. duplicative data entry)? Does your agency receive complaints regarding the amount of time it takes to process documents, receive payments, get things approved? Does your agency strive to be recognized as having Best Practices

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13 If the answer was YES to ONE or more questions, consider the following process: Assess current organizational processes & characteristics Create design criteria Create to-be organizational processes & characteristics Develop a new organizational infrastructure IMPLEMENT!

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16 The first two steps are complete... In the fall of last year, many of you completed the as-is analysis. This data provides a good baseline for beginning the assessment process In January and February, a number of you worked with us to define as-is organizational structures STEP 1 STEP 2

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17 Our initial analysis of current structures and approval approaches identified several findings…. Size of agency was not a key determining factor for structure or number of approvals Differences in centralized and decentralized structures were fairly significant Agencies that had the same structure on paper, did not necessarily identify the same strengths and weaknesses As-is models are located in Appendix A by size of agency Organization Structure STEP 2

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22 How do leadership actions support the development and direction setting for Administrative Services? How are they promoted and used? Is there an opportunity to use them better? Develop new ones? How is training viewed and communicated? Are staff proactive in identifying appropriate training? Are staff encouraged to develop a career plan? Is performance measured and managed effectively? How does your agency address recruitment and deployment of employees? Do you have a career path? STEP 3 Assessing the Organizational Infrastructure Staff Development Recruitment/ Deployment Rewards/ Incentives Leadership

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23 Beginning the assessment process Use the assessment in your handouts Work with your agency team members to review and begin the assessment We will reconvene in ten minutes to discuss STEP 3

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26 Create design criteria and performance objectives Design criteria define what the new organization should ideally be able to provide. Design criteria may conflict with one another Performance objectives define what high level outcomes you want to achieve as an organization and will help drive the design. STEP 1

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27 Identify influences and constraints This step is the reality check and identifier of potential roadblocks Important to complete after establishing the design criteria and performance objectives Examples of influences and constraints include: STEP 2 Geographic Dispersion Readiness for Change Employee Skills Political Influences Legislation/ Statutes

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28 Beginning the process With your agency team members, draft some design criteria and performance objectives Draft some influences and constraints In ten minutes we will reconvene STEP 2

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29 Conduct Preliminary Analyses: prioritize and assess gaps With leadership, identify which criteria and objectives are a priority. Use a rating scale of 1-5 with 1 being a priority Assess the current priority of that criteria within the organization today STEP 3 Design Criteria Priority Future Priority Today Gap Improve processing times Reduce duplicative activities

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30 Conduct Preliminary Analyses: assess the effort to change and associated costs The gap analysis and the influences and constraints provide the data to assess the effort it will take to change Associated costs relate to areas where there may be funding or staffing required STEP 3 Design Criteria Effort to Change Costs Issues Associated Improve Hardware Kentucky Processing Times Medium Derby set-up Reconfigured may change Office Space timing Reduce duplicative High Training Old activities efforts continue until 12/99

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33 Existing statutes and resource constraints somewhat limit ability to provide rewards and incentives With leadership support there are still many opportunities to recognize employees Well-defined performance measures will make assessment of who deserves rewards and recognition easier and fair Well-defined career path can also contribute Identify and define the rewards and incentives that you can use Rewards/ Incentives STEP 4

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34 Create staff development needs for the new organization What skills or competencies will be needed? Do they need to become part of class specifications requirements? Define agency approach to training in administrative services area and required trainings Develop guidelines for management and staff Promote development of career plan that includes training plans and significant career milestones Define performance measures (e.g., reduce documentation preparation and approval time by one-third). Staff Development STEP 4

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36 Determine key organization model components Use the design criteria, performance objectives, and list of influences and constraints Review the common organizational design models Assess criteria using Fit Model Blank Fit Model is in your handouts and will be in the folder sent to you next week STEP 5 Organization Structure

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37 There are some common organizational models that can help STEP 5 Organization Structure Process- Centered Customer Functional GeographicService Hybrid

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40 To-be models to consider Models address the structure only Two agencies could have the same structure, but not be equally effective or efficient due to differences in their other processes & characteristics Goal is to reduce the number of approvals and the redundant activities STEP 5 Organization Structure

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41 Using the organizational fit model, the design criteria, and the sample models, develop a directional design for your administrative services organization Hybrids of different types of models are common Models need to support the business processes Dont need to get into the specific details of the design yet STEP 5 Organization Structure Create your model organization

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43 Begin to define the new structure Each component of the new structure should have a purpose statement and a defined activities set Policies and procedures for the new structure will need to be developed Cross walk roles from the to-be roles for Administrative Services to the structure Reassess associated costs to change…the new structure may have introduced new needs Organization Structure STEP 5

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44 Develop a briefing document for the new organization Becomes a roadmap for leadership and employees Outline provided in handouts and in the documents we will provide to you Clarifies and integrates all of the Organizational Infrastructure Processes and Characteristics Creates the justification and need for change STEP 6

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47 Timing of implementing the structural changes can be as critical as the structure itself... Freeze on Executive Orders and Administrative Orders that will affect Chart of Accounts through August of 1999 Capacity to change and achieve desired benefits given limited resources Uncertainty about the exact impact the system will have on an agencys operations.

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49 Ensure the effectiveness of the implementation Measuring the agencys ability to meet the design criteria and performance objectives after implementation is critical Continuous improvement should become a part of the agencys culture (maybe made formally) True effectiveness will take time. Make sure to measure and acknowledge the small successes.